Bay Area bounces back with job gains for the first time since May

The Bay Area powered to a gain of 4,500 jobs in September, outpacing the rest of California, which was jolted by a loss of nearly 64,000 jobs that kept the state's unemployment rate unchanged at 12.4 percent, according to a report released Friday.

The gains in the Bay Area marked the first time since May that the nine-county region produced an increase in jobs, according to a report by the state's Employment Development Department.

However, job losses in Southern California and the Central Valley kept the state's overall unemployment rate from improving.

"The California economy remains in a deep jobs recession," said Stephen Levy, director of the Palo Alto-based Center for Continuing Study of the California Economy. "This is another disappointing jobs report for the state." The U.S. jobless rate was 9.6 percent last month.

The Bay Area upswing was fueled by job gains in the South Bay, San Francisco area and the Peninsula -- and by a sharply reduced rate of job losses in the East Bay, seasonally adjusted figures showed.

"The Bay Area certainly stands out in terms of positive job growth," said Michael Bernick, a San Francisco-based research fellow with the Milken Institute and former EDD director.

The region was paced by a gain of 4,700 jobs in the South Bay and 1,000 in the San Francisco-San Mateo-Marin region. And the East Bay was only a minor drag on the area, losing just 200 jobs in September. That was the best performance for the Alameda County-Contra Costa County region since May.

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California lost 63,600 jobs in September -- two thirds of the jobs lost nationwide -- a bleak sign the state trails the country.

Plus, the statewide employment losses appear to be focused primarily on a few industries, said Dennis Meyers, principal economist with the state's Finance Department.

"The big losers in September were local government, public schools, private education and construction," Meyers said. "Government accounted for about half the job losses."

The erosion in local and state government jobs might only be starting, warned Brad Kemp, an economist with Beacon Economics.

"Government was so resistant to have job losses, and was depending on a turnaround," Kemp said. "But reality has clicked in and they have to balance their budgets. Now they are in a panic. And they should be."

Analysts were dismayed that the erosion in construction has yet to abate. California lost 13,300 construction jobs in September.

The kinds of jobs in demand in the Bay Area vary widely, said Liz Pasch, branch manager with the Pleasanton office of Robert Half International, an employment firm.

"Financial analysts, controllers, accounting clerks, and people in billing and collection are really in demand," Pasch said. Customer service, administrative assistant and human resources jobs also are actively being offered.

In the technology field, the "really hot" jobs are in network administration, desktop support, and software development, Pasch said.

It makes sense that Silicon Valley, the Peninsula and nearby high-tech regions are starting to underpin a rebound in the Bay Area, Kemp said.

"There is pent-up demand for software and hardware from businesses," Kemp said.

Despite the improvement in the Bay Area, job seekers still portray the employment picture as dreary.

"It's easy to get interviews, but it's hard to get the job," said Megan McKinney, a Castro Valley resident out of work since July.

McKinney doesn't have a college degree and is finding the job market fiercely competitive.

Stephanie Vargas, a Concord resident, is working now as a receptionist in Antioch. She was out of work for a year but found a job in April. Now, Vargas is attempting to find a better-paying position.